Warehouse Management Systems (WMS) have been a fundamental part of the supply chain industry for decades. These software systems allow for real-time inventory management, productivity tracking, and comprehensive reporting to ensure optimal warehouse operations. However, many companies, including large ones, are still new to WMS, and stakeholders in new WMS projects may lack experience in this area. This article aims to provide a comprehensive overview of the top 10 benefits of an advanced WMS, as identified by SCDigest.

Table of Contents

  • Introduction

  • Comprehensive Inventory Control

  • Comprehensive Audit Trail

  • Paperless Warehouse Operations

  • System-Directed Activities

  • Improved Customer Order Processing

  • Detailed Productivity Tracking

  • Comprehensive Metrics and Reporting

  • Truck Planning Capabilities

  • Customer Compliance Labeling

  • Continuous Improvement

  • Conclusion

  • FAQs

Comprehensive Inventory Control

A WMS provides comprehensive inventory control through real-time, accurate visibility to all inventory in the warehouse, including location, quantity, lot or batch, serial number, etc. This visibility can be extended from an individual distribution center to provide centralized visibility to all inventory across multiple warehouses, improving overall inventory management.

Comprehensive Audit Trail

A WMS should provide a comprehensive audit trail of all warehouse activities and transactions, capturing who did what, when. This data is used to improve error resolution and power operational analytics, resulting in increased accuracy and productivity.

Paperless Warehouse Operations

Most WMS implementations involve paperless warehouse operations, driving productivity and accuracy through widespread use of bar code scanning and mobile terminals. This allows for real-time tracking and updates, reducing the risk of errors and improving overall efficiency.

System-Directed Activities

A WMS provides system-directed activities for all work in the distribution center, improving productivity through smart sequencing of tasks. These tasks include putaway, cycle counting, order picking, replenishment, truck loading, and others. Work is assigned based on the “3 P’s” of permission, priority, and proximity, ensuring optimal resource utilization.

Improved Customer Order Processing

The core activity of most distribution centers is to pick and ship customer orders. A WMS should improve this process by providing tools and techniques that include wave planning, support for multiple picking methods (discrete, batch, cluster, zone, zone-batch, etc.), dynamic slotting, and improving replenishment of forward picking areas if used. This leads to increased productivity and improved customer satisfaction.

Detailed Productivity Tracking

A WMS provides detailed productivity tracking at the individual associate level by task type and direct and indirect time. This allows for improved resource allocation and more accurate performance evaluations.

Comprehensive Metrics and Reporting

A WMS provides comprehensive metrics and reporting at the facility level and aggregated across facilities. This data can be used to identify trends, areas for improvement, and opportunities for optimization.

Truck Planning Capabilities

A WMS should provide truck planning capabilities to automate that process and reduce transportation costs. This allows for more efficient routing, reduced lead times, and improved customer service.

Customer Compliance Labeling

A WMS should support customer compliance labeling and other services common in the retail sector but also seen in other industries, to reduce or eliminate customer chargebacks. This ensures compliance with industry standards and reduces the risk of costly penalties.

Continuous Improvement

A WMS should serve as a platform to enable rapid process, work flow, and technology changes that drive continuous improvement and meet new opportunities and distribution requirements. Today, support for DC automation of many types is especially important. This allows for flexibility and adaptability in a rapidly changing business environment.

Conclusion

Warehouse Management Systems (WMS) are critical to ensuring efficient and accurate warehouse operations. An advanced WMS provides comprehensive inventory control,